PERTH, Australia – StepChange Holdings Limited (ASX: STH) has entered into a binding agreement to acquire BroadReach Group Pty Ltd, a Perth-based ICT advisory firm specializing in enterprise architecture, strategy, and digital transformation, the company announced on Wednesday.
The acquisition will add approximately 40 senior consultants and strengthen StepChange’s capabilities in high-impact enterprise architecture and strategic ICT advisory services. BroadReach brings long-standing relationships with Western Australian government agencies, including WA Police, Department of Communities, and Synergy, diversifying StepChange’s client base into the public sector.
BroadReach reported FY25 revenue of A$8.96 million and normalized EBITDA of A$0.94 million. The deal carries a maximum acquisition multiple of 4.6 times normalized EBITDA.
Under the terms, StepChange will pay A$2.5 million upfront—A$1.6 million in cash and the remainder in shares—with up to A$1.8 million in deferred earn-out payments subject to BroadReach meeting EBITDA targets for FY26 and FY27.
StepChange Managing Director Shane Bransby said the acquisition enhances the company’s ability to lead end-to-end digital transformation programs and creates significant cross-selling opportunities across cloud migration, ERP transformation, and ICT roadmap development.
The transaction is aligned with StepChange’s strategy to pursue selective inorganic growth that expands its capabilities and presence in large-scale public-sector digital programs.
Completion is subject to customary conditions, with the upfront shares to be placed in voluntary escrow for 12 months.